the tax base erodes it was mismanaged and ends up like this. >> there are a number of other cities across the country that face shortfalls. do you think you'll see other cities starting to declare bankruptcy? >> i don't think it's anything anybody wants to do detroit's situation is particularly dire. but this is a noose that's tightening around city and state's necks for decades. and the recession pulled it tight. a pension plan is supposed to be 80% funded. there are 34 states in this country that are under that barometer. only one state, wisconsin, has a fully funded pension plan. you're looking at the numbers we are $1.3 trillion short in states of what we need. >> for retirees when you hear this, this is really scary. >> basically this is something we've had to confront for a long time and we're finally hit with it. but the truth is states can't pay this bill. and they're going to have to do something about it. they're starting to. illinois just yesterday passed legislation they're $100 billion in the hole. >> if the states can't, what's happened? >> what has to happen is workers have